Neptune's Smith edges into cyclical sector

Jeremy Smith is tilting UK Equity portfolio towards early cyclicals and expects further repositioning in near future

Neptune fund manager Jeremy Smith has tilted approximately 5%-7% of his UK Equity portfolio from a defensive bias into early cyclicals. However, he expects another 30% of the fund will need to be repositioned before it benefits from a market recovery, which he intends to do gradually over the coming year. Real estate is one area that Smith finds attractive and he has purchased some holdings in this sector such as British Land, which currently accounts for 0.7% of the fund. This is because he believes real estate can benefit from an improvement in credit conditions. Smith's fund has a ...